[Asia Economy Reporter Ji Yeon-jin] Korea Investment & Securities, a subsidiary of Korea Financial Group (CEO Jeong Il-moon), announced on the 19th that it will publicly offer two types of Bankis-exclusive equity-linked securities (ELS) products, each with a limit of 5 billion KRW.
The "TRUE ELS 15432" is a 3-year maturity product based on Tesla and the EUROSTOXX 50 index as underlying assets. Every six months, the stock prices of the two underlying assets are checked to determine early redemption. If the prices of both assets are at least 80% (at 6 and 12 months), 75% (at 18 and 24 months), 70% (at 30 months), and 60% (at maturity) of the initial reference price, an annual return of 20% is paid and early redemption occurs.
The "TRUE ELS 15433" is a 3-year maturity product based on semiconductor companies AMD (Advanced Micro Devices) and NVIDIA as underlying assets. If the stock prices of both stocks are at least 85% (6 months), 80% (12 months), 75% (18 months), 70% (24 months), 65% (30 months), and 60% (at maturity) of the reference price, an annual return of 19.6% is paid and early redemption occurs.
Even if the early redemption conditions are not met, both products will pay the agreed returns at maturity if none of the underlying assets fall below the principal loss threshold (knock-in) during the investment period. The knock-in levels for the two products are 40% and 45%, respectively, and if the price falls below the knock-in level, losses ranging from 40% to 100% of the principal may occur.
The subscription period for general individual investors is from September 19 to 20. According to the investor cooling-off system, there will be a cooling-off period from September 21 to 22, and investors can confirm their subscription intention between September 23 and 26 at 10 a.m.
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